It’s no secret that there’s never been a better time to borrow, and when you take out a home equity line of credit in 2014 you’ll get unheard of interest rates! Working with one of our Toronto mortgage brokers you’ll be able to get everything you need to get a low rate for a long term or short term HELOC. Why just take whatever deal a lender feels like giving you when you can get the right deal for you? Let us pair you with a lender that will give you a square deal on a round loan!
What is a Home Equity Line of Credit?
Home equity is the actual amount of your home that you actually own. A line of credit is like a credit card, so a home equity line of credit (also known as a HELOC) is a line of credit secured by the equity in your home. You’ll need a majority of equity in your home to take out a HELOC and it’s best for people with big ticket purchases or those investing in remodelling their homes. It’s important to note that if you’re not able to pay back, just like with anything secured by equity, you could lose your home.
Why Not a Second Mortgage?
A second mortgage or home equity loan is a different kind of animal altogether. Working with one of our Canada mortgage brokers will help you figure out which one is right for you. A second mortgage or home equity loan will be delivered up to you in a lump sum – you won’t have the opportunity to change your mind later and borrowing ANOTHER second mortgage again too soon can damage your credit and hike your interest rate. A home equity line of credit is more like a pay as you go kind of option. You’ll have everything there that you need to fund your project or purchase, and if you need something more you’ll be able to get that too.
Why You Should Borrow Now
Borrowing now is one of the best decisions you can make. Through early 2014 you’ll find that rates are at century lows; you’ll be able to get the highest loan to value ratio that we’ve seen since the 70s. Why get stuck with a bad deal when you can get everything that you need now? The only reason you should wait is if you’re working on debt consolidation; the higher your credit the less you’ll pay in points and interest in the long run. Good credit is important, but aside from that you’ll be able to get some great rates!
Don’t Go It Alone
When you work with one of our Toronto mortgage brokers you’re going to get all the help you need. We’ll help you understand how your credit and equity will work for or against you, help pair you with the right lender and work with you to get the best deal.
To find out how we can help you find a great mortgage, apply online here!